EJI was chartered in South Carolina because of favorable tax rates on aircraft deliveries. Other locations that would have worked include Nashua, New Hampshire and Wilmington, DE. South Carolina was chosen because of it's proximity to Gulfstream and the joint nature of the original EJI/Gulfstream relationship.
Gulfstream was the driver in EJI being a separate company. For brand management they did not want a large group of marginally qualified Citation II pilots flying their jets. Gulfstream insisted on internationally qualified Gulfstream pilots. The only way to achieve this was for the then Executive Jet to write an exception to scope, get the Teamsters to ratify it and form a separate company.
It is to be noted as well that Gulfstream is profoundly anti-union. In the 70's the company moved from Bethpage, NJ to Savannah, GA primarily because of the lack of quality in the northern union workforce and the perceived quality of the non-union good-ole-boy workers in the South.
I can't speak to Richard's thoughts or motivations in all of this. It is my observation, however, that he runs the company in a very Northeastern fashion, that is to say that his management style is based on personal loyalty. He rewards those that are loyal to him, punishes those who are not. For instance, I've known the present President of NJI since he worked for Digital Equipment. He is ideally suited to his present job and has done a superb job of collegially leading the company. However, at the time Joe was selected to lead EJI, there were others in the company that, to some, appeared to be better qualified for the position. Santulli chose him to lead EJI/NJI because Joe had been with him from the start and had been steadfast in his support of Richard and the company.
As far as Richard saying that NJA pilots would eventually fly Gulfstreams, I'm not disputing that he said it, I simply don't know anyone who heard him say that - not in NJI nor in Columbus. I do know that he advised the union at the time they ratifed the exception to scope for the Gulfstreams that there would be no further exceptions for large aircraft and there weren't. When the BBJ was brought on board, he hired contract training captains for what was at first to be three years, then eventually became four years, to bring the NJA pilots up to speed.
GV